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From Home Furnishing Business

Chromcraft-Revington Sales Lower With Rep Changes

By Home Furnishings Business in Casual Dining on May 2007 Chromcraft-Revington, West Lafayette, Ind., said a soft retail climate, import pressures and a major change in the company€™s sales structure resulted in a 26.3 percent decline in first-quarter sales.

Chairman and CEO Ben Anderson-Ray said the company realigned its sales force in a way the company believes will boost performance as market conditions improve. Prior to the change, Chromcraft-Revington used multi-line sales representatives, but began shifting to exclusive sales representatives during the quarter. He said the old system made it difficult to coordinate sales activities and cross-sell the company€™s brands under the CR Home banner. Those brands include Chromcraft, Peters-Revington, Sliver Furniture and Sumter.

€œAs an element of the company€™s transformation, we restructured the residential sales activity with unified management and exclusive representation of the company€™s brands,€ Anderson-Ray said. €œThis transition better aligns the sales organization with the long term goals of the company€™s new vision. The soft retail conditions may have aggravated the sales decline of this transition.€

With sales of $33.8 million during the quarter that ended March 31, Chromcraft-Revington recorded a net loss of $1.17 million as compared to net earnings of $1.12 million during the same period of 2006. The results include a pre-tax charge of $358,000 related to the costs of shutting down facilities as part of the company€™s restructuring last year.

Commenting on the restructuring, Anderson-Ray said, €œIn 2006, we began a transformation of the company toward a new vision based on a more integrated organizational model that utilizes research-based consumer understanding to develop products using a global supply chain and U.S.-based built-to-order customization capabilities.€

In the announcement, company officials said shipments of products for the commercial market increased over 2006. The commercial division was not affected by the sales realignment.


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